The dollar headed for a third daily drop as markets are awaiting the Federal Reserve's Jackson Hole economic symposium later this week to get more clues on the amount and timing of the interest-rate reductions. The euro climbed to the highest since January, while the British pound touched the strongest level since July 2023. 

The Bloomberg Spot Dollar Index fell 0.1%, extending weakness into a third day.

"Real rates in the US continue to grind lower and real rate differentials between the USD and elsewhere are grinding lower as well," said Brad Bechtel, global head of FX at Jefferies Financial Group Inc. "I assume that Powell will keep the door open to 50bps in order to retain the optionality but that he will also try to walk back the emergency talk and the extremity of the situation".

EUR/USD climbed as much as 0.3% to 1.1117; highest level since Dec. 28.

GBP/USD rose 0.3% to 1.3027; it touched 1.3052, highest level since July of last year.

EUR/SEK drops as much as 0.6% to 11.3667; Riksbank lowered borrowing costs for a second time since May and sketched out more easing than previously expected.

USD/JPY drops 0.6% to 145.72; it erased gains after the Bank of Japan released a pair of research papers highlighting the persistence of inflationary pressure in the economy, indicating there is still a case to be made for another interest-rate hike.

Source : Bloomberg

Sumber : Bloomberg